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Archegos: Difference between revisions
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What follows is heavily derivative and based on assumptions and extrapolations from a single footnote that may well be entirely mistaken. Nevertheless, I think it illustrates an interesting hypothetical point. | What follows is heavily derivative and based on assumptions and extrapolations from a single footnote that may well be entirely mistaken. Nevertheless, I think it illustrates an interesting hypothetical point. | ||
While other brokers shipped losses most conveniently measured in the ''billions'', one — [[Goldman]] — yes, ''that'' [[Goldman]] — reported “immaterial losses”. Be assured, other brokers will be stamping their feet, cracking their cheeks, cursing obstreperous ill fortune and beseeching whatever God there is who looks after the interests of regulated broker dealers “how | While other brokers shipped losses most conveniently measured in the ''billions'', one — [[Goldman]] — yes, ''that'' [[Goldman]] — reported “immaterial losses”. | ||
Be assured, other brokers will be stamping their feet, cracking their cheeks, cursing obstreperous ill fortune and beseeching whatever God there is who looks after the interests of regulated broker dealers “how in the name of all that is holy can it be that why we took a regular shellacking, that [[Goldman]] outfit got away, without so much as a crease in its trousers, ''again''? | |||
“What kind of second sight, what extra-sensory perception, what compromising photos of the almighty have they got that we mortal dealers do not?” | |||
Perhaps it is as simple as this: ''Goldman didn’t have much risk on in the first place''. This may be prudent business selection; it may be that Goldman didn’t have much of a relationship with Archegos in the first place. According to a communication from CS’s credit risk team in April 2020, “Archegos had disclosed that its long positions with CS were “representative” of the positions Archegos held with its six other prime brokers at the time (namely Morgan Stanley, Jefferies, Nomura, Wells Fargo, Deutsche Bank, and UBS).” | Perhaps it is as simple as this: ''Goldman didn’t have much risk on in the first place''. This may be prudent business selection; it may be that Goldman didn’t have much of a relationship with Archegos in the first place. According to a communication from CS’s credit risk team in April 2020, “Archegos had disclosed that its long positions with CS were “representative” of the positions Archegos held with its six other prime brokers at the time (namely Morgan Stanley, Jefferies, Nomura, Wells Fargo, Deutsche Bank, and UBS).” | ||